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Ireland’s SMEs and car rental companies express alarm at potential impact of proposed European EV mandate

Representative bodies back Europe-wide movement to replace damaging legislation with incentive-led framework.

ISME, Ireland’s representative body for small and medium enterprises, and the Car Rental Council of Ireland, have joined forces to endorse a European movement to oppose the imposition of Clean Corporate Vehicle (CCV) legislation, proposed by the European Commission, that would see car rental companies being obliged to purchase only battery EVs from 2030.

Commenting on the proposal, Peter Boland, Chief Executive of the Car Rental Council, said that “the Irish car rental industry recognises that the EU is already working towards a 2035 deadline for the transition to zero emission cars; and the industry is working with all the relevant state agencies to align with that deadline.”

“However, the proposed new CCV legislation will force car rental companies into offering electric vehicles to customers who do not yet want them. In particular, the only option available to SMEs, who regularly use rentals as vehicle replacements or to facilitate busy periods, will be battery EVs which may not suit their operational needs, particularly when publicly available charging infrastructure is nowhere near adequate and affordability remains an issue.”

“The imposition of mandatory EV purchases will not accelerate enabling conditions such as charging infrastructure or affordability, or increase customer demand,” Boland said. “Instead, a purchase mandate will cause severe damage to the rental sector, resulting in slower not accelerated access to e-rentals in Ireland.”

Neil McDonnell, CEO of ISME said, “Making SMEs take EVs when Ireland is not yet ready for them will be counter-productive, reducing economic activity and taking the focus off the enabling conditions that need to be put in place, particularly charging infrastructure.”

“We urge the Irish Government, in its role as President of the Council of the European Union, to adopt a more balanced and effective approach, and to replace the proposed binding targets with an incentive-led framework that supports Member States and local authorities in implementing the necessary enabling conditions and accelerating the uptake of zero- and low-emission vehicles in corporate fleets. In this, we fully support the position of our European partners, SMEUnited, who understand the damage the CCV could inflict on Europe’s SMEs at a time when the resilience of our small and medium enterprises is critical to the future of Europe.”

Attachment: Joint statement on the CCV from Leaseurope, SMEUnited, UETR, Eurofinas, IRU and FIGIEFA.